Table 3.

Logit model for green sukuk issuance

VariableCoefficientStd. errorz-valuep > |z|95% CI lower95% CI upper
Rating−3.7800.045−83.250.000−3.869−3.690
Amount issued−3.2250.034−96.060.000−3.291−3.159
Tenure0.3700.00939.280.0000.3520.389
z-spread0.0020.0020.810.418−0.0020.005
Mid yield1.0910.05121.590.0000.9921.190
Clean price1.0710.40325.200.0000.9881.155
FX rate−138.6614.976−27.870.000−148.414−128.908
Intercept60.2150.70984.880.00058.82461.605
Pseudo R20.638
Observations189,098

Note(s):

The dependent variable is a binary indicator, where 1 represents a green sukuk and 0 represents a green bond. Coefficient indicates the change in the log-odds of green sukuk issuance relative to green bonds for a one-unit increase in the corresponding independent variable. Std. error measures the precision of the coefficient estimate. z-value is the test statistic, calculated as the coefficient divided by its standard error. p > |z| denotes the p-value, which tests whether the coefficient is significantly different from zero. The 95% CI lower and 95% CI Upper are the bounds of the 95% confidence interval. Rating refers to the bond’s credit rating. Amount issued represents the total bond issuance size. Tenure indicates the bond’s maturity period. z-spread measures the yield difference between the bond and a benchmark risk-free rate. Mid Yield is the midpoint yield between the bid and ask prices. Clean Price represents the bond price excluding accrued interest. FX rate captures the impact of foreign exchange fluctuations

Source(s): Authors’ own work

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